Open auction CPMs are lower than direct deal CPMs because publishers deliberately tier their inventory. Premium publishers in India—JioHotstar, SonyLIV, Zee5—reserve their highest-quality inventory (premium content adjacency, guaranteed placement, brand-safe environments) for advertisers who make direct commitments. Open auction receives what remains after direct and PMP demand is fulfilled: typically remnant inventory with less control over placement, content adjacency, and delivery timing.
The pricing gap between open auction and direct IO in India CTV is meaningful. Agency estimates suggest open programmatic CPMs for standard non-skippable pre-roll on mid-tier platforms can sit 40–60% below equivalent direct deal rates on the same platform. The gap is wider on premium publishers where direct demand is strong. The gap narrows on smaller platforms with excess unsold inventory. Private Marketplace (PMP) deals sit between the two—offering programmatic efficiency and better inventory quality than open auction, typically at 20–40% above open auction CPMs.
When does the direct premium justify the cost?
- Guaranteed delivery: Direct deals offer guaranteed impression delivery; open auction cannot guarantee how quickly your budget will clear or at what placement quality
- Content adjacency: Direct allows you to specify programme context; open auction gives no guarantee of what content your ad appears alongside
- Exclusive inventory: Some premium placements—live sports mid-roll, home screen takeovers—are only available through direct
- Brand safety controls: Direct deals include explicit brand safety terms; open auction inventory quality is harder to verify in India CTV without third-party verification
For brand-building campaigns with a premium association requirement, the direct premium is typically justified. For reach-focused campaigns with flexible inventory requirements, PMP or open auction can deliver acceptable CPMs at meaningfully lower cost.
Full guide
For a complete explanation, read: Premium vs open auction CTV CPMs in India: understanding the pricing gap